NEW DELHI : The government has shelved its ambitious plan to sell 5% stake in state-owned Coal India Ltd and is now instead focussing on raising money through special dividend from the coal miner.
“Coal India issue will not happen,” a finance ministry official said. “It (raising money from Coal India) will be only through special dividends.”
The government had planned to divest 5% stake in the company through offer for sale. However, the government has put the plan on the backburner because of persistent opposition from the trade unions, the official said. The government was hoping to raise Rs 95 bln from Coal India divestment.
Coal India, which has cash reserves of over 600 bln rupees, is reportedly considering paying special dividend of 18-20 rupees per share.
IOC proposal on Thu
The Empowered Group of Ministers will meet Thursday to consider the timing and floor price of offer for sale of shares in state-owned Indian Oil Corp, two senior government officials said.
Petroleum Minister Veerappa Moily, however, said his ministry will agree to sell stake in Indian Oil only if the price is good. -Cogencis